Investment negotiations concerning the Tanzania-Zambia Railway Authority (TAZARA) are in their final stages, with China Civil Engineering Construction Corporation (CCECC) set to invest $1.4 billion in the historic railway connecting Tanzania and Zambia.
This was announced by TAZARA’s Chief Executive Officer, Bruno Ching’andu, during the Zambia International Mining and Energy Conference (ZIMEC 2025) held in Kitwe, Zambia. Ching’andu stated that with this investment, CCECC will operate TAZARA for 30 years.
“The investment from CCECC will not only restore our railway infrastructure but also position TAZARA as a key enabler of trade and economic growth between Tanzania and Zambia,” said Ching’andu.
Under the three-nation agreement, CCECC will invest $1 billion in rehabilitating the TAZARA railway, while $400 million will be allocated for the purchase of 32 train locomotives and 762 freight wagons.
During the 30-year operational period, the first three years will be dedicated to railway rehabilitation, followed by 27 years of full-scale operations.
Discussions on TAZARA’s management began after years of declining performance and financial losses. Formal negotiations started in 2016 but later stalled due to unresolved debt issues and tax concerns.
READ MORE: Tanzania, China, and Zambia Agree on the Improvement of the TAZARA Railway
Talks resumed after a long pause, and on December 12, 2023, Chinese experts were dispatched to inspect the 1,860-kilometer railway. Negotiations officially restarted in May 2024. By September 2024, during a summit in Beijing between the Presidents of China, Tanzania, and Zambia, the trilateral agreement was signed.
Strategic Importance of TAZARA
For China, TAZARA serves as a crucial transport route, especially for the shipment of vital minerals from Zambia and the Democratic Republic of the Congo (DR Congo), where China has significant investments.
The railway also plays a role in the global competition between China and the United States. The U.S. is currently planning to construct a railway through Angola, linking DR Congo and Zambia to the Atlantic Ocean.
This creates competition between two transport corridors—one through Tanzania (Indian Ocean) and another through Angola (Atlantic Ocean), as both seek access to DR Congo and Zambia’s mineral resources.
Additionally, DR Congo and Zambia are major users of Tanzania’s Dar es Salaam port. Improved railway infrastructure will enhance Tanzania’s trade and economic benefits.
Historical Background of TAZARA
The TAZARA railway was China’s first major infrastructure project in Africa and its first large-scale foreign aid initiative after the establishment of the People’s Republic of China in 1949.
Known as the “Freedom Railway,” TAZARA was built in response to Zambia’s economic struggles due to colonial era restrictions that hindered its copper exports, the backbone of its economy.
Tanzania and Zambia initially sought financial and technical assistance from international financial institutions, western countries, and the Soviet Union, but all declined, viewing the project as politically and economically unfeasible.
Following Tanzanian President Julius Nyerere’s visit to China in February 1965, Chinese leader Mao Zedong expressed willingness to support the project. The official agreement was signed on September 5, 1967. In March 1968, the TAZARA authority was established, and construction began in October 1970.
The railway was completed in 1976, with trial operations starting on July 14 of the same year. During construction, 160 workers lost their lives including about 64 Chinese nationals lives out of the more than 50,000 workers involved.
Despite challenges over the years, TAZARA remains a significant symbol of cooperation between Zambia, Tanzania, and China, particularly because China never demanded repayment of the $500 million loan it provided for the railway’s construction.
